QBE says premiums gained about 4% in the first quarter, excluding compulsory third party, while investment conditions have been challenging.

CEO Pat Regan told the annual general meeting in Sydney on Thursday that premium increases were led by Australia and New Zealand, with positive movements also in North America and Europe.

Improvements in the Asia-Pacific business will be weighted more towards the second half of the year as the group pursues a remediation plan.

“Overall, our first-quarter underwriting performance is tracking to plan and, as a consequence, we remain on track to achieve our combined operating ratio target for the full year,” he said.

Mr Regan told the meeting that global investment markets were challenging during the first four months of this year due to rising yields and equity market volatility, with year-to-date returns on an annualised basis below the full-year target range.

“That said, the lower investment returns have been offset by the benefit of higher risk-free rates used to discount liabilities.”

QBE is undergoing an improvement program after reporting an annual net loss of $US1.2 billion ($1.6 billion) last year due to natural catastrophes, writedowns and emerging market issues.

About 45% of shareholders voted against the company’s remuneration report, which includes pay arrangements for key executives, delivering a “first strike” to the company.

“Naturally, we are very disappointed by this,” Chairman Marty Becker said. “However, we have heard your concerns. The board will use this feedback from shareholders on our remuneration approach and review what changes we want to make.”

Shareholders of listed companies vote on whether to spill all board positions if at least 25% of votes are against adopting the remuneration report at two successive annual meetings.

Mr Becker says the company has started work to improve its climate risk-related disclosures, starting in annual reporting materials this year. A resolution on the AGM notice paper calling for more disclosure on climate change was not put, after the first part of the motion was defeated.